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Technology Stocks : Novell (NOVL) dirt cheap, good buy? -- Ignore unavailable to you. Want to Upgrade?

To: Howard t Anderson who wrote (30384)	2/17/2000 12:45:00 PM
From: Paul Fiondella	Read Replies (1) \| Respond to of 42771

Concerning NKQEE --- May 25 Calls It looks like the bid/ask is around 18 3/4 with someone selling prematurely at 17 3/8ths which is the trade level I'm showing for 200 contracts. That means at 43 3/4 you are basically only a point above market in terms of premium. The question is whether you plan to exercise and hold the stock at some point. Otherwise you are holding the option just to track the stock. I think with in the money options one safe choice is to sell enough options to pay for the original cost. A less conservative and more profitable variation on this --- sell some higher priced options against your position. A May 50 call sells for 4 3/8ths. The stock would have to close above 54 3/8ths for you lose the further gains, and you get half your investment back today.